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V3830-15 2 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renuncia a la exención

Waiver of VAT exemption on property transfers may only be made by the transferor who is a taxable person

A query was raised regarding who is authorised to waive the VAT exemption on the transfer of a property used as an office. The DGT ruled that only the transferor acting as a businessperson or professional may waive the exemption, and that the transfer of usufruct is subject to the tax.

The question raised

Clarification is requested regarding who must perform the waiver of the exemption.

The DGT's ruling

The waiver of the exemption for second and subsequent deliveries of buildings must be exercised by the taxable person performing the transaction. In the case of a transfer of bare ownership and usufruct, the portion corresponding to the children is not subject to VAT if they are not entrepreneurs or professionals. The mother's portion, being an entrepreneur due to leasing, is subject to but exempt from VAT, and she may waive the exemption. Finally, the transfer of the usufruct is subject to VAT as it is not a building intended exclusively for residential use.

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